The Enron-Krugman Connection

Mar 28, 2003 | Dollars & Crosses

Krugman claims that Vice President Cheney's energy task force misdiagnosed the California crisis, while "yes, I am patting myself on the back for getting it right." But when, exactly, was Krugman "getting it right"? When he was paid $50 thousand to be a member of the Enron Advisory Board? When he was writing glowing puff-pieces on Enron for Fortune magazine? Or when he was accusing the Bush administration of "crony capitalism" for its involvement with Enron, without admitting his own involvement? Does he really think that by not mentioning the name Enron in a column about energy market manipulation that no one will remember any of that?

And does he think that, just because the Times doesn't fact-check him, that no one else will either when he grossly misrepresents a report released this week by the Federal Energy Regulatory Commission? Krugman says,

"...the new report concludes that market manipulation was pervasive, and offers a mountain of direct evidence, including phone conversations, e-mail and memos. There's no longer any doubt: California's power shortages were largely artificial, created by energy companies to drive up prices and profits."

But, in reality, the report says no such thing. The second and third sentences of its executive summary say:

"Staff concludes that supply-demand imbalance, flawed market design and inconsistent rules made possible significant market manipulation as delineated in final investigation report. Without underlying market dysfunction, attempts to manipulate the market would not be successful."

Well, it's going to be tough for Krugman to honestly say what was in that report. The report was written "by order of the Commission, to determine whether Enron Corp. or any other sellers manipulated electricity and natural gas markets in California..." But we can't mention Enron, now can we?

Gobsmacked: BBC Reporter Blasts Bosses Over ‘Bias’

Mar 27, 2003 | Dollars & Crosses

The BBC was last night sensationally condemned for "one-sided" war coverage--by its own front line defence correspondent. Paul Adams attacks the Beeb for misreporting the Allied advance in a blistering memo leaked to The Sun....On Monday, he wrote from US Central Command in Qatar: "I was gobsmacked to hear, in a set of headlines today, that the coalition was suffering ‘significant casualties'. "This is simply NOT TRUE...."

In one blast, he storms: "Who dreamed up the line that the coalition are achieving ‘small victories at a very high price?' "The truth is exactly the opposite. "The gains are huge and the costs still relatively low. This is real warfare, however one-sided, and losses are to be expected."

The BBC has come under attack for describing the loss of two soldiers as the "worst possible news for the armed forces". One listener asked: "How would the BBC have reported the Battle of the Somme in World War I when 25,000 men died on the first day?" [London Sun, 3/26/03]

Sullivan today also points to this letter to the Times of London complaining about the BBC--from former Labour Party officials. And he writes:

Remember one of the key elements, we're finding out, in this battle is the willingness of the Iraqi people to stand up to the Saddamite remnants. That willingness depends, in part, on their confidence that the allies are making progress. What the BBC is able to do, by broadcasting directly to these people, is to keep the Iraqi people's morale as far down as possible, thereby helping to make the war more bloody, thereby helping discredit it in retrospect. If you assume that almost all these reporters and editors are anti-war, this BBC strategy makes sense. They're a military player. And they are objectively pro-Saddam. [AndrewSullivan.com, 3/26/03]

Mugabe: The Adolph Hitler of the 21st Century

Mar 27, 2003 | Dollars & Crosses

At the state funeral of one of his cabinet ministers, Mr Mugabe said: "I am still the Hitler of the time. This Hitler has only one objective, justice for his own people, sovereignty for his people, recognition of the independence of his people, and their right to their resources.

"If that is Hitler, then let me be a Hitler tenfold. Ten times, that is what we stand for."

Hours later members of the Zimbabwe National Army, including Mr Mugabe's elite force, the Presidential Guard, began a pre-dawn rampage in revenge for the opposition general strike last week.

The attacks left more than 250 people injured, scores of them seriously... [Daily Telegraph, 3/26/03]

Is Mugabe just saying "Let them call me Hitler--I must do what's right, regardless of what they think"? No; he's saying: "Like Hitler, I have no moral compunctions in my choice of tactics."

The Hazards of “Humanitarian” War, Part II

Mar 27, 2003 | Dollars & Crosses

Almost a week into the invasion of Iraq, a coalition force that was deliberately kept smaller than some Pentagon officers recommended is fighting under constraints designed to minimize world condemnation and avoid alienating Iraqis the Bush administration wants to liberate. Coalition troops limit fire to avoid killing civilians, and forces deliberately steer clear of destroying electric plants and other infrastructure vital to daily life. There are already signs the limits are jeopardizing allied lives. Restrictions on the use of firepower against Iraqi defenders have prolonged battles, endangered supply lines and possibly contributed directly to casualties.

Army Apache helicopters, for example, encountered withering ground fire in a nighttime engagement Monday south of Baghdad, in part because the Apache crews were ordered not to attack the power grid in the area. Lights from streets and buildings made it easier for Iraqi gunners to spot the aircraft against the night sky. One Apache was downed, its two-man crew taken prisoner.

[...] Well aware of the coalition's self-imposed constraints, Iraqi forces are exploiting them, violating the laws of war by placing fighters among civilian populations, shedding uniforms for civilian clothes, using ambulances to send military messages and even firing on U.S. troops from hospitals and homes. [...] Tactics used by the Iraqis have included parking fighter jets in cemeteries, using civilian vessels to lay sea mines, signaling surrender and then opening fire, and using women and children as human shields to get closer to allied forces.... [USA Today, 3/26/03]

Powell: Butt out, U.N.

Mar 27, 2003 | Dollars & Crosses

WASHINGTON - Secretary of State Colin Powell yesterday vowed that America won't turn over control of Iraq to the United Nations - and a French veto - after Saddam Hussein is ousted.

"We didn't take on this huge burden with our coalition partners not to be able to have a significant dominating control over how it unfolds in the future," Powell told a House subcommittee. "We would not support . . . essentially handing everything over the U.N. for someone designated by the U.N. to suddenly become in charge of the whole operation," Powell added.

Powell's tough talk signaled that the Bush administration is ready to take a hard line with the United Nations after it failed to get tough with Saddam or enforce 17 resolutions demanding he disarm. British Prime Minister Tony Blair, who last night began a quickie summit with President Bush at Camp David, also signaled that he doesn't foresee any quick turnover of Iraq to any kind of U.N. administration.

Uncivil Thuggery Courtesty of “Anti-War” Protestors

Mar 27, 2003 | Dollars & Crosses

Scores of protesters were arrested Thursday after they lay down on Fifth Avenue to block traffic in the latest of a series of ongoing demonstrations against the war.

Let's just hope that traffic didn't happen to include an ambulance rushing to an emergency. But then again, "peace" is not the primary result of these protests:

The traffic-blocking technique was used in recent antiwar protests in San Francisco, which led to thousands of arrests and complaints that police used excessive force. Police Commissioner Ray Kelly said Wednesday that antiwar protests were costing millions of dollars in overtime and drawing police resources away from crime-fighting and antiterrorism operations. "People are out to disrupt life in the city," Kelly said. "This is more than protest, more than free speech. We're talking about violating the law." [About 190 Arrested After Protests Block Fifth Ave, WNBC]